REX Global takes majority stake in Yota Devices
Hong Kong based REX Global has taken a 64.9% stake in Yota Device’s, the company behind the unique YotaPhone smartphones that include a second, E-Ink powered screen on the back side of the devices. According to the terms of the deal that have been revealed, REX Global is investing $100 million in Yota with at least $50 million of that being made available to Yota to provide an immediate cash infusion.
The next major event for Yota will be the release of the next generation YotaPhone in early 2016. That device is going to be produced by ZTE, which should help address some of the manufacturing issues that befell Yota in bringing the YotaPhone 2 to market. Access to other players in the Chinese market will be one of the intangible benefits of the new investment by REX Global. Yota’s CEO Vladislav Martynov says the company has “a pipeline of different products” and the infusion of financial resources from REX Global will help the company start to pursue some of those opportunities.
Yota will continue to operate out of Russia where most of the company’s employees are located. Yota’s long-time investor Rostec will continue to maintain a 25.1 percent stake in the company and Yota Management will retain a 10 percent share.
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